Public Finance Management Act (PFMA) Compliance
1. B-BBEE Compliance Performance Information
The PPECB’s compliance report in terms of section 13G(1) of the Broad Based Black Economic Empowerment (B-BBEE) Act 46 of 2013, read with section 12(1) of the B-BBEE Regulations of 2016 and B-BBEE Explanatory Notice 01 of 2018 is detailed below.
As contained in the annual report guide for Schedule 3A and 3C public entities, the PPECB has applied the relevant Code of Good Practice in the following manner:
| CRITERIA | RESPONSE (YES/NO) | DISCUSSION |
|---|---|---|
| Determining qualification criteria for the issuing of licences, concession, or other authorisations in respect of economic activity in terms of any law? | No | Not applicable |
| Developing and implementing a preferential procurement policy? | Yes | The PPECB complies with the Preferential Procurement Regulation of 2022 |
| Determining qualification criteria for state-owned enterprises? | No | Not applicable |
| Determining qualification criteria for entering into partnerships with the private sector? | No | Any public private partnership (PPP) that the PPECB may enter into will be in line with the Treasury Regulations |
| Determining criteria for the awarding of incentives, grants, and investment schemes in support of Broad Based Black Economic Empowerment? | No | However, three of the indicators under Programme 4 addresses the issue of capacitating black/historically disadvantaged individuals |
Note: The PPECB has submitted the required information by the appointed independent economic empowerment rating agency, however, at the time of reporting, the agency is yet to finalise the new B-BBEE certificate and scorecard. The current verification report is provided on the following page.
2. Irregular Expenditure
| Figures in Rand | 2025 | 2024 |
|---|---|---|
| Opening balance | - | - |
| Prior period errors | - | - |
| Add: Irregular expenditure confirmed | 22 553 | 679 380 |
| Less: Irregular expenditure not condoned and removed | (22 553) | (679 380) |
| Closing balance | - | - |
Irregular expenditure 2025:
There were two instances of irregular expenditure. In the first instance, the three-quote procurement process was not followed and prior approval from the Chief Financial Officer was not obtained. In the second instance the entity continued to use rental services of a service provider whose contract expired.
Irregular expenditure 2024:
There were seven instances of irregular expenditure. The three-quote procurement process was not followed in three instances and prior approval from the Chief Financial Officer was not obtained. There were three instances where the entity continued to use service providers when the contracts had expired and in one instance the entity directly approached one supplier, and the threshold limits were not adhered to.
| Reconciling notes to the annual financial statement disclosure | 2025 | 2024 |
|---|---|---|
| Irregular expenditure for the current year | 22 553 | 679 380 |
| Total | 22 553 | 679 380 |
| Details of current and previous year irregular expenditure removed - (not condoned) | 2025 | 2024 |
|---|---|---|
| Irregular expenditure NOT condoned and removed | 22 553 | 679 380 |
| Total | 22 553 | 679 380 |
Irregular expenditure was approved by the Board after the year-end.
3. FRUITLESS AND WASTEFUL EXPENDITURE
Figures in Rand
| Figures in Rand | 2025 | 2024 |
|---|---|---|
| Opening balance | - | - |
| Add: Fruitless and wasteful expenditure confirmed | 2 245 652 | 139 475 |
| Less: Fruitless and wasteful expenditure written off | (2 245 652) | (139 475) |
| Less: Frruitless and wasteful expenditure recoverable | - | - |
| Closing balance | - | - |
Fruitless and wasteful expenditure 2025:
There were three instances of fruitless and wasteful expenditure. In the first instance, a VAT payment to the South African Revenue Services was deemed to be paid late and penalty and interest charged of R2,160,783. The matter is being disputed however to prevent further interest being charged, the penalty and interest payment was made. In the second instance, an employee’s laptop was damaged through negligence and her employment contract terminated prior to the investigation being concluded. There were insufficient available funds to recover the full debt and R6,150 was irrecoverable. In the third instance, four laptops were stolen and the investigations conducted could not determine how or by whom the laptops were stolen. An amount of R78,719 was irrecoverable.
Fruitless and wasteful expenditure 2024:
There were three instances of fruitless and wasteful expenditure. In the first instance a terminated employee continued to receive a
salary. In the second instance a prospective employee was paid a salary but not subsequently employed. In the third instance, bursaries
provided to an employee was not recovered in full upon her resignation
salary. In the second instance a prospective employee was paid a salary but not subsequently employed. In the third instance, bursaries
provided to an employee was not recovered in full upon her resignation
| Reconciling notes to the annual financial statement disclosure | 2025 | 2024 |
|---|---|---|
| Fruitless and wasteful expenditure for the current year | 2 245 652 | 139 475 |
| Total | 2 245 652 | 139 475 |
| Details of current and previous year fruitless and wasteful expenditure not recoverable and written off | 2025 | 2024 |
|---|---|---|
| Fruitless and wasteful expenditure not recoverable and written off | 2 245 652 | 139 475 |
| Total | 2 245 652 | 139 475 |
4. Inter-Institutional Matters
4.1 There were no non-compliance cases where the institution is involved in an inter-institutional arrangement (where such institution is not responsible for the non-compliance).
4.2 There were no non-compliance cases where the institution is involved in an inter-institutional arrangement (where such institution is responsible for the non-compliance).
4.2 There were no non-compliance cases where the institution is involved in an inter-institutional arrangement (where such institution is responsible for the non-compliance).
5. LATE AND/OR NON-PAYMENT OF SUPPLIERS
The PPECB did not have non-payment of suppliers for the period under review. Payments were made in accordance with agreed upon negotiated terms.
6. INFORMATION ON SUPPLIER CHAIN MANAGEMENT
6.1 PROCUREMENT BY OTHER MEANS
| No | Name of Supplier | Reason for procurement by other means | Value of contract |
|---|---|---|---|
| 1 | Whistle Blowers (Pty) Ltd | Deviation from the competitive procurement process for training in respect of the PPECB ethics hotline. | 7 763 |
| 2 | NST Beleggings 013 BK | Deviation from the competitive procurement process due to a non-responsive RFQ process for Groblersdal office rental. | 780 180 |
| 3 | Van Eeden Geboue (Pty) Ltd | Deviation from the competitive procurement process due to a non-responsive RFQ process for Ceres office rental. | 2 968 679 |
| 4 | Gaby Gess | Deviation from the competitive procurement process due to impracticality. | 498 336 |
| 5 | Marcus Evans | Deviation from the competitive procurement process for attendance to an online governance risk & compliance conference. | 15 520 |
| 6 | Satinsky 105 Travellers Rest | Deviation from the competitive procurement process due to a non-responsive RFQ process for Clanwilliam office rental. | 480 649 |
| 7 | Parvest Pty) Ltd | Deviation from the competitive procurement process due to a non-responsive RFQ process for Montague Gardens Office rental. | 3 980 454 |
| 8 | Erven 481 & 171 Tzaneen (EDMS) BK | Deviation from the competitive procurement process due to a non-responsive RFQ process for Tzaneen Office rental. | 1 946 424 |
| 9 | Augpad Koelkamers (Pty) Ltd | Deviation from the competitive procurement process due to alternative office space being limited in the Augrabies area. | 191 771 |
| 10 | Joseph Kalango, subcontracted Architect by Consultmech | Deviation for appointment of a third party to finalise basement occupancy certificate project due to impracticality. | 26 000 |
| 11 | Microsep (Pty) Ltd | Deviation for procurement of Multi Fluorescence Detector Waters 2475 unit for the Alliance HPLC. | 538 235 |
| 12 | JT Ross Property Group | Deviation from the competitive procurement process due to a non-responsive RFQ process for Durban Office rental. | 5 755 720 |
| 13 | Maserumule Attorneys | Deviation from the competitive procurement process for continued rendering of professional services to the Board. | 31 660 |
| 14 | Nieuwoudia Droomland (Pty) Ltd | Deviation from the competitive procurement process due to alternative office space being limited in the Augrabies area. | 1 166 874 |
| 15 | ITEC (SA) | Deviation from the competitive procurement process to ensure business continuity with no business disruption and continued M-Files licensing and support. | 1 897 209 |
| 16 | Maserumule Attorneys | Deviation from the competitive procurement process for continued rendering of professional services to the Board. | 35 650 |
6.2 CONTRACT EXTENSIONS AND VARIATIONS
| No | Name of Supplier | Reason for expansion or variation of contract | Original contract value | Value of contract expansion or variation of contract | Value of previous contract expansion or variation of contract |
|---|---|---|---|---|---|
| 1 | KMHT Properties Investments CC | Variation of the contract value for the rental of office space | 476 640 | 99 300 | - |
| 2 | CRS Technologies | Variation of the contract value for the integration to Oracle - compensation module | 672 000 | 83 600 | - |
| 3 | Erven 481 & 171 Tzaneen (EDMS) BK | Extension/Variation of current lease to allow sufficient time for competitive tender process. | 959 694 | 146 775 | - |
| 4 | NASDAQ Corporate Solutions International Limited | Variation of current contract for an additional license | 629 694 | 20 990 | - |
| 5 | Altron Karabina | Expanded time and scope to accommodate critical functional and business requirements | 25 767 130 | 29 946 | 8 325 043 |
| 6 | Clifford Martin | Variation of contract - assessment of entity readiness to new ERP and Business as Usual | 884 500 | 29 000 | - |
| 7 | Ricoh (South Africa) | Extension of managed printing services to allow sufficient time for entity determine business needs | 6 030 957 | 2 150 200 | 2 786 553 |
| 8 | Rentokil Initial | Extension of Hygiene Services for Regional Offices | 415 275 | 103 115 | - |
| 9 | PKF Cape Town Incorporated | Variation and expansion of scope due to additional external audit work conducted | 4 290 650 | 759 725 | - |
| 10 | Dreamsmith Marketing (Pty) Ltd | Variation to support reports on entity website | 323 886 | 29 220 | - |
| 11 | Akili IT Services | Variation to include migration of entity intranet to Sharepoint Online | 736 440 | 287 500 | 357 390 |
| 12 | Microsoft Ireland Operations Ltd | Variation to include additional dataverse storage on the Enterprise agreement | 59 020 049 | 7 469 326 | - |
| 13 | Oracle Corporation (South Africa) | Variation due to the extension of the test environment | 32 989 609 | 36 973 | 3 558 394 |
| 14 | Experiential Technologies (Pty) Ltd | Amended extension of contract date. No additional financial implications as budget unspent to date. | 640 000 | - | - |